Indianola council adopts FY2026 budget after public hearing; property tax rate falls slightly

The Indianola City Council adopted the city's fiscal year 2026 budget after holding a second public hearing, the council confirmed during its April meeting.

"Tonight we are holding the second public hearing and adopting the budget," said Jackie, a city staff member who presented the proposal, summarizing departmental reductions and revenue projections.

The budget process began in the fall and winter as departments submitted initial requests, Jackie told the council. From the initial submitted budgets to the proposed version presented at the hearing, total expenses decreased by about $2.5 million, a reduction of approximately 5.6 percent, Jackie said. Revenues are projected to increase by about 2.8 percent, or “just slightly under $1,200,000,” according to the presentation.

The council also discussed levy rates. The consolidated general levy for the City of Indianola was reported as $7.86 for FY2026 (down from $7.94 in FY2025). The city does not set the formula used to calculate that consolidated levy, Jackie said; state legislation determines the rate. The employee benefit levy was reported at $3.85 for FY2026, down from $3.98.

Council members asked for clarity about the timing of cuts and public communication. One councilor said residents had not yet seen the impact of service reductions and warned that community members might be surprised when cuts take effect. Jackie responded that the budget is a “living document” and can be amended during the fiscal year if new expenses or grants arise.

Following presentation and brief discussion, the council voted to adopt the budget. The clerk called the roll; the minutes record council votes in favor and the motion carried.

The council and staff noted that some operating funds (streets and stormwater) carry substantial reserves — over 75 percent, the presentation said — and that those funds may incur higher expenses next year as projects move forward. The sewer department, in its third year of operating the new plant, is expected to better forecast expenses later this year and to show effects of recent rate changes.

The city manager and staff noted that no changes had been made to the published public hearing notice and reminded the council that budget amendments may be made after July 1 if necessary. The council directed that nonunion staff receive no step increases unless the council decides otherwise; the employee benefit levy was held steady to avoid forcing deeper cuts in department budgets.

Votes at the meeting were recorded by roll call and indicated unanimous approval of the adoption motion as reflected in the clerk's tally.